IM.83 A distribution center for a sporting goods retailer places orders with manufacturers for a variety...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
IM.83 A distribution center for a sporting goods retailer places orders with manufacturers for a variety of items. Among these is a popular standard skateboard, targeted to first-time skate boarders. The regular price is $50, however, the manufacturer of this skateboard offers quantity discounts per the following discount schedule: Option Plan A Quantity 1 - 799 Discount 0% B C 800 - 1,999 2,000+ 1.0% 2.00% The retailer pays $90 each time it places an order with the manufacturer. Holding costs are negligible (none) but they do earn 12% annual interest on all cash balances (meaning there will be an financial opportunity cost when they put cash into inventory). Annual demand is expected to be 28,750 units. Based on this information, sort each option plan from left to right by dragging the MOST preferred option plan to the left, and the LEAST preferred option plan to the right: Option Plan A Option Plan C Option Plan B For the MOST preferred option in the previous question, what will be the adjusted order quantity? (Display your answer to the nearest whole number.) Number What will be the annual holding cost for the MOST preferred option? (Display your answer to the nearest whole number.) Number What will be the total annual inventory cost for the MOST preferred option? (Display your answer to the nearest whole number.) Number IM.83 A distribution center for a sporting goods retailer places orders with manufacturers for a variety of items. Among these is a popular standard skateboard, targeted to first-time skate boarders. The regular price is $50, however, the manufacturer of this skateboard offers quantity discounts per the following discount schedule: Option Plan A Quantity 1 - 799 Discount 0% B C 800 - 1,999 2,000+ 1.0% 2.00% The retailer pays $90 each time it places an order with the manufacturer. Holding costs are negligible (none) but they do earn 12% annual interest on all cash balances (meaning there will be an financial opportunity cost when they put cash into inventory). Annual demand is expected to be 28,750 units. Based on this information, sort each option plan from left to right by dragging the MOST preferred option plan to the left, and the LEAST preferred option plan to the right: Option Plan A Option Plan C Option Plan B For the MOST preferred option in the previous question, what will be the adjusted order quantity? (Display your answer to the nearest whole number.) Number What will be the annual holding cost for the MOST preferred option? (Display your answer to the nearest whole number.) Number What will be the total annual inventory cost for the MOST preferred option? (Display your answer to the nearest whole number.) Number
Expert Answer:
Answer rating: 100% (QA)
To determine the most preferred option plan we need to calculate the total annual inventory cost for ... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
Students also viewed these accounting questions
-
Recent financial statements of General Mills, Inc. report net sales of $12,794,761,000. Accounts receivable are $935,888,000 at the beginning of the year and $959,532,000 at the end of the year. (a1)...
-
3.) Consider the following process presented by the block diagram X(s) 0.55e-0.5s Y(s) 2s+1 3.4e-2.1s 2.7s+1 Y(s) a.) Determine Y2(t) for this system in response to a unit step change in input, X(t),...
-
A 55 turn circular coil has a radius of 19.7 cm. A current of 2.35 A flows through the coil. Determine the magnetic field magnitude B at the center of the coil. B =
-
At Blossom Company, events and transactions during 2020 included the following. The tax rate for all items is 20%. (1) Depreciation for 2018 was found to be understated by $148000. (2) A strike by...
-
What is a store image and what are its dimensions and components?
-
When contingent consideration in an acquisition is based on security prices, how should this contingency be reflected on the acquisition date? If the estimate changes during the measurement period,...
-
Juan Garcia, a newly minted MBA of a prestigious East Coast U.S. university, has been assigned to the treasury department at Cemex as part of his management training program's rotation. He has now...
-
A producer of computeraided design software for the aerospace industry receives numerous calls for technical support. Tracking software is used to monitor response and resolution times. In addition,...
-
possible scenarios. XYZ BC Low High Low $200, $500 $0, $1,500 High $600, $600 $400, $1000 Is there a dominant strategy for ABC? If there is, what is it and why? If none, why? (3 pts) Is there a...
-
Hearts R Us (Hearts or the Company) is an early-stage research and development medical device company. Hearts has no current products in the marketplace but is in the final stages of going to market...
-
As a car ages, its value decreases. The value of a particular car with an original purchase price of $24,200 is modeled by the following function, where c is the value at time t, in years. c(t) = 24,...
-
1. A company manufactures two products, chairs and tables.Data regarding the two product is as follows: Direct labor hours per unit Annual production Chairs 0.5 Hours 5,000 Units Tables 0.8 Hours...
-
How much cash did the business spend during the month? 1. Purchased office supplies for $2,400 in cash. 2. Clients paid a total of $23,000 cash in fees. 3. Paid the current month's office rent of...
-
3. (a) (2 marks) Evaluate the limit lim x0 1 - cos(x) x Hint: Multiply both numerator and denominator by 1 + cos(x), then use the result known from class: lim sin(x) x0 = 1. (b) (2 marks) The...
-
One of the junior accountants from your auditing firm has reviewed your records and entries for inventory, direct costs, overhead accounts and cost of goods sold. They have found two entries that...
-
The Sarbanes - Oxley Act of 2 0 0 2 is also known as
-
A statistical study shows that the fraction of television sets of a certain brand that are still in service after x years is given by f (x) = e-0.15x. (a) What fraction of the sets are still in...
-
Comparative Advantage in the Twenty-First Century. With reference to the theory of comparative advantage, explain how MNEs outsource some services to emerging market economies.
-
Outsourcing and MNEs. How can global outsourcing enable a firm to become a multinational enterprise?
-
Ganados Globalization. After reading the chapters description of Ganados globalization process, how would you explain the distinctions between international, multinational, and global companies?
Study smarter with the SolutionInn App